A Three-Point Checklist for Winning the Rat Race

Here's the checklist I keep in mind:

The here and now: If you do not start off by making sure that you are emotionally and physically sound before making a decision or starting an activity, you might neglect some pivotal data (i.e., being sick or depressed) that could impair your overall performance. Focusing on the present helps you to ignore past failures or negative thoughts. You must know the landscape or the current information about a particular investment before you flick your switch on and make a go at something.

The future: Looking ahead and setting short-term goals can keep you motivated to follow through with any project or potential investment. Once you have determined that you are ready to start a work project or a sound investment idea, you can start to look ahead at your goals. Looking forward allows us to take risks and make big money if our initial strategy or mental set was sound. Keep looking for those targets to pass and you will keep making progress.

The rear-view mirror: As a rule of thumb, never get complacent. (Look at what happened to the New York Mets.) Once you have achieved a financial goal, completed a project or passed your competitors, never take for granted that they can make a comeback. Once you have identified a trend in the data, look around for other contenders or historical data that could impact the outcome of a trade. Once you have ruled out any potential impediments, you can move on and cross the finish line.

Please write to the Stock Doc with your trading, emotional or investing dilemmas. Dr. Cass always welcomes comments and stories, for which he'll try to offer solutions in later columns.